Snapchat Introduces Conversational AI with Perplexity Partnership
Snap Inc. reported strong quarterly results, showcasing growth in both its user base and revenue. Following the announcement, Snap's shares surged about 12% on Thursday, fueled by better-than-expected performance and positive guidance on user engagement and spending.
Strategic Partnership and Stock Buyback
The company approved a stock buyback and revealed a significant partnership with AI-powered answering engine Perplexity. This $400 million deal, a mix of cash and equity spread over one year, will bring conversational artificial intelligence (AI) search capabilities to Snapchat.
AI Integration to Transform User Experience
Snap said the integration of Perplexity’s system into Snapchat will start early next year, offering users “a new way to ask questions, explore topics they care about, and learn about the world.” This move represents a key step towards making Snapchat a platform where leading AI companies can engage creatively and reliably with its global community.
“A new way to ask questions, explore topics they care about, and learn about the world.”
Investor Confidence and Future Outlook
The market's positive response reflects investor confidence in Snap’s strategy to incorporate innovative AI services provided by startups, enhancing its platform’s value and growth prospects.
Summary: Snap’s robust growth and $400 million AI partnership with Perplexity mark a strategic push to innovate Snapchat’s user experience and boost investor confidence.